This invention relates generally to systems for handling discount coupons such as are used in connection with the purchase of items from retail supermarkets, and more particularly relates to a method and apparatus for receiving, marking and retaining such discount coupons.
The use of discount coupons in retail marketing, particularly in grocery supermarket operations has become widespread. Coupons have been found by manufacturers and retailers to be an effective competitive tool. Discount coupons may be made available to customers by various means such as being printed in newspapers and magazines, being sent through the mail and being distributed at the store where they are to be used. Handling and accounting for these coupons has become a very real problem however.
There are obviously substantial opportunities for fraud when coupons may be used in place of part of the cash otherwise used to pay for purchased items. Also coupons are normally ultimately redeemed by manufacturers of the goods to which they relate, with reimbursement being made to the stores accepting the coupons. Therefore, providing a precise accounting system for the coupons, and insuring that the coupons have been used only in connection with the specific articles for which they were issued, become extremely important.
Identifying specific coupons and entering information concerning them into data processing systems used by retail establishments is facilitated by printing bar codes on coupons so that they can be scanned by the same type of equipment widely used for scanning bar code labels on merchandise items to be purchased.
Unless the coupons which are received in connection with purchases of related products are marked, mutilated or destroyed, they could conceivably be re-used or fraudulently presented to the manufacturer for improper reimbursement. It is therefore important that proper control be exercised over coupons which are received in the course of a purchase transaction. Marking of coupons which have been used is generally preferable to destruction of the coupons, since in many instances the coupons must be returned to the manufacturer or to a coupon redemption center which handles coupon transactions for one or more manufacturers.
There are several coupon redemption centers in the United States. Such redemption centers contract with retailers either to process used coupons sent to them for a processing fee, or to purchase the coupons from the retailers at an agreed-upon rate, for example such as so much per pound of coupons. These redemption centers maintain an on-going relationship with the manufacturers or issuers of the coupons, and are audited by the issuers on a regular basis. Since the redemption centers have established networks in place with the manufacturers or issuers to redeem very large numbers of used coupons, it is often difficult for a retail establishment or chain economically to justify dealing directly with a manufacturer or issuer of coupons. The system of the retail establishment or chain should preferably therefore be one which handles the coupons in a manner which is compatible with the requirements of the coupon redemption centers.
A system which effectively combines the capability of scanning coupons with means for receiving, marking and retaining such coupons so that they cannot be further used would provide important advantages in facilitating the handling of such coupons, regardless of whether they are returned directly to a manufacturer or issuer, or whether they are sent to a coupon redemption center.